Calculation of service tax on Computer Software License

[Deepak Goel]

Please tell me how to calculate service tax on Computer Software License :- 1. Whether add VAT in the value of product first and then calculate service tax on value of product and VAT. 2. Service Tax and VAT is to be calculated on value of product. This is very urgent.

Deepak Goel

Mob No. 9818112228

AI Summary

Service tax and VAT should be calculated separately on goods and services, avoiding taxation of one tax by the other.
Service tax and VAT should ordinarily be levied independently on their respective taxable components: VAT on the value of the software sale and service tax on separately charged services (installation, support, updates). The prevailing view rejects charging tax on tax; where both goods and services exist, providers must segregate values and show nexus and reasonable allocation between the goods and service elements.